Loading...
HomeMy WebLinkAbout2A Redevelopment Commission Minutes_8.22.24 - Signed CITY OF SOUTH BEND REDEVELOPMENT COMMISSION SOUTH BEND REDEVELOPMENT COMMISSION August 22, 2024, at 9:30 a.m. BPW Conference Room, 13th Floor, County-City Building https://tinyurl.com/RDC08222024 The South Bend Redevelopment Commission was called to order at 9:30 a.m. President Troy Warner presiding. 1. ROLL CALL Members Present: Troy Warner, President David Relos, Vice President Vivian Sallie, Secretary Eli Wax, Commissioner Members Absent: Leslie Wesley, Non-Voting Advisor Marcia Jones, Commissioner Legal Staff: Danielle Campbell Weiss, Asst. City Attorney Redevelopment Staff: Caleb Bauer, Exec. Director, DCI Sarah Schaefer, Deputy Director, DCI Erik Glavich, Director of Growth and Opportunity, DCI Rosa Tomas, Director of Finance, DCI Joseph Molnar, Asst. Dir. of Growth and Opp., DCI Others Present: Charlotte Brach, Senior Engineer Tina Patton, Cross Community, Inc. 2. Approval of Minutes A. Approval of Minutes of the Regular Meeting of Thursday, July 25, 2024 B. Approval of Minutes of the Regular Meeting of Thursday, August 8, 2024 CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – 08.22, 2024 2 Erik Glavich, Director of Growth and Opportunity, commented that it’s been a team effort, and he appreciates the Commissioners patience on getting the minutes up to date. Upon a motion by Secretary Vivian Sallie to approve, second by Vice President David Relos, the motion carried unanimously; the Commission approved the Minutes of the regular meeting of July 25 and August 8, 2024. 3. Approval of Claims A. Claims Allowances 8.13.2024 Commissioner Eli Wax asked to review the change order for Four Winds Filed Expansion Project (page 18) PO 24886 inquired why the $724,977.00 change. Rosa Tomas, Director of Finance, DCI and Caleb Bauer, Executive Director of the Department of Community Investment, stated in could be in regard to the design contract and will follow-up in writing and the Redevelopment Commission provided funding and will be reimbursed through the Professional Sports and Conversion Development Area revenues as they come in within the next two (2) years through the expansion of the district. Commissioner Wax agreed to that. Mr. Bauer also stated that, the project is in line with the budget and may need some design modifications. Secretary Vivian Sallie asked if the project is still on schedule and Mr. Bauer stated construction will begin at the end of this baseball season and will involve the supporting facilities and the desk expansion will not occur until the next off season. There will be limited work done that will not affect games or attendance. Upon a motion by Vice President David Relos, seconded by President Troy Warner, to approve, the motion carried unanimously; the Commission approved the Claims Allowances of August 13, 2024. 4. Old Business A. None 5. New Business A. Redevelopment Fund (a.k.a Pokagon Fund) 1. Budget Request (Financial Empowerment Center) Caleb Bauer, Executive Director of the Department of Community Investment, stated this is an additional budget request for a previous request that had been approved which is the proposal for funding to CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – 08.22, 2024 3 support the Financial Empowerment Center. We have been selected to be an awardee for a grant funding through the Centers for Financial Empowerment of over $150,000 for over two (2) years of operation from the Bloomberg Philanthropies Network Program. Sarah Schaefer, Deputy Director of the Department of Community Investment stated an award letter from Bloomberg Cities was in the packet as well as the timeline for the funding, $75,000 the first year, $65,000 the second year and $10,000 at the end of the grant. Commissioner Eli Wax asked if we would be appropriated the amount and then be reimbursed. Mr. Bauer confirmed. Through the Pokagon fund. Upon a motion by Secretary Vivian Sallie to approve, seconded by Vice President David Relos, the motion carried unanimously; the Commission approved the Budget Request (Financial Empowerment Center) as presented on August 22, 2024. B. River West Development Area 1. First Amendment to Development Agreement (Great Lakes Capital) Joseph Molnar, Assistant Director of Growth and Opportunity, stated that back on March 28, 2024 approved multiple agreements through Great Lakes Capital for two blocks in downtown South Bend, South of Memorial Hospital stated that a scrivener’s error occurred, and a small parcel owned by Beacon was omitted on the legal description. This amendment is presented to include this parcel (018-1003-0101), and no other changes or terms are included. Secretary Vivian Sallie asked where that parcel is located and Mr. Molnar stated the Burger King restaurant for reference and the parcel is North of that and South of Madison St. Danielle Campbell Weiss, Asst. City Attorney stated it was not in the first Exhibit. Ms. Weiss stated that everyone agreed that it should have been included from the beginning. Upon a motion by Commissioner Eli Wax to approve, seconded by Vice President David Relos, the motion carried unanimously; the Commission approved First Amendment to Development Agreement (Great Lakes Capital) as presented on August 22, 2024. 2. Opening Bids (410 W. Wayne Street Redevelopment RFP) Joseph Molnar, Assistant Director of Growth and Opportunity, stated we received four (4) proposals prior to the deadline. Mr. Molnar asked for staff to review and recommend at September 26, 2024 meeting. i. Michael LaCarrubba – L Street Kitchen ii. Andrew Wilson Smith – AWS Sculpture Studio, LLC CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – 08.22, 2024 4 iii. Rex Weaver – Stoic Beverages LLC iv. Tiernan Kane – Unity LLC Secretary Vivian Sallie asked if Unity LLC has been involved in any other projects in the area. Mr. Molnar stated not that he has heard of, but they may have partners in the documentation included in the packet. Upon a motion by Vice President David Relos to refer the proposals to staff for review and recommendations, seconded by Secretary Vivian Sallie, the motion carried unanimously; the Commission approved the Bid Openings as presented on August 22, 2024. 3. Opening Bids (River Glen Office Park Redevelopment RFP) a. No Bids Received Joseph Molnar, Assistant Director of Growth and Opportunity, stated Mr. Bauer, Mr. Glavich and he met with regional developers that are interested in the site, however, had difficulty with the timeline. Mr. Molnar stated we will continue to pursue any proposals. Commissioner Eli Wax added that we could now be more flexible to pursue developers. Caleb Bauer, Executive Director of the Department of Community Investment, stated he doesn’t believe there isn’t interest in developing the site, just the complexity of the site and the busy construction season the developers couldn’t pull together their bids. President Troy Warner asked if there’s a window that we can’t act and Mr. Molnar stated that there is no waiting period, and we are free to start negotiating. C. River East Development Area 1. Development Agreement (River Walk LLC) The Point at 703 Northside Blvd. Erik Glavich, Director of Growth and Opportunity explained that the City has a standard development agreement with an entity called River Walk LLC and Mr. Jim Sieradzki, President of Century Builders. Mr. Sieradzki will speak regarding the project near Howard Park. Mr. Sieradzki says the 11 acres of land he bought from Transpo, the bus company, 10 years ago has some minor environmental issues and River Walk LLC have looked at opportunities to develop this for quite some time. They would build 13 for sale residential units on the property and you know the city’s commitment would be $500,000 to the $10 million project and he would commit to completing the 13 two- story townhomes by the end of 2027. Mr. Sieradzki states, the CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – 08.22, 2024 5 challenges that this property has are topographic challenges as well as the requirement of rebuilding the retaining wall and there's been historically some environmental issues. There are some amounts of arsenic and lead that require remediation. Heartland Environmental did testing and it is extremely expensive to remove and clear all of the debris. Mr. Sieradzki explained that, 20 feet of soil doesn’t support construction. So advanced construction techniques would be required. They would use helical piers, and then the construction would go on top. He indicated that this is a big expense. Vice President David Relos asked if the retaining wall of the office building to the North will be redon and Mr. Sieradzki explained it would with planters and it will be beautiful. Century Builders will be paying for the wall at the Atrium Building to make the site attractive to buyers. The floor was opened to the public and following a question by Matt Barrett on 110 S. Niles Ave., what is the city’s position with subsidizing high priced real estate. Caleb Bauer, Executive Director of the Department of Community Investment, stated that this site would not have been a viable site if the city hadn’t gotten involved with a redevelopment agreement due to the environmental aspect to offset some of that cost. He explained that's really the reason we're proposing this to the Commission with the uniqueness of the site, the challenges of the site, and its market rate. Mr. Bauer says the market will eventually handle it and we’ve seen unprecedented growth in the River East development area. Upon a motion by Commissioner Eli Wax to approve, seconded by Vice President David Relos, the motion carried unanimously; the Commission approved the Redevelopment Agreement as presented on August 22, 2024. 2. Budget Request (ND to DTSB Trail) Ms. Charlotte Brach, Senior Engineer, is asking for a budget request of $500,000 to replace old water mains, adding separate storm sewers, full road reconstruction, curbs, raised intersections, raised crossings, landscaping, and wayfinding signage. This project is currently under construction and the city has contributed $4 million through a bond as well as the Notre Dame University and the Hotel/Motel tax. Commissioner Eli Wax asked what the city’s total commitment and Ms. Brach is stated $4 million. Commissioner Wax asked from what revenue source is this coming from, and Mr. Bauer stated, the debt service on this bond is paid through the River East development area on this portion of the bond. He said, As Ms. Brach mentioned, $7 million is brought to the table from the partners, $3.5 million from ND University, $3.5 million from the Hotel/Motel Tax, and then the city CITY OF SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING – 08.22, 2024 6 would bring what we're proposing $4.5 million into the project. Commissioner Wax asked to clarify, what the city agreed to originally was $4 million and this is the added $500,000. Mr. Bauer explained this large project was difficult to budget dollar for dollar and this will be the last request to the Commission. Ms. Brach agreed. Vice President David Relos asked what roads are being affected and Ms. Brach started, Notre Dame Ave. to South Bend Ave. to Hill St. and to LaSalle Ave. Ms. Brach also said, there are new separated sewers or water mains needed, along South Bend Ave. and Notre Dame Ave. since they are all from the 1800’s. Commissioner Relos asked where this will be installed, and Ms. Brach explained Notre Dame Ave. has a lot of space to work with and we will replace existing sidewalks that are in bad condition and we will be adding on the East side of the road another tree lawn, a trail with separated bike paths, and then they'll still be enough space for the tree lawn. Commissioner Relos added that this will be a great addition to the city. Upon a motion by Secretary Vivian Sallie to approve, seconded by Vice President David Relos, the motion carried unanimously; the Commission approved the Budget Request as presented on August 22, 2024. 6. Progress Reports A. Tax Abatement None B. Common Council Erik Glavich, Director of Growth and Opportunity stated that at the previous Common Council meeting on August 12th, the Common Council adopted a declaratory resolution to start the process for a 5-year personal property tax abatement, for Hoosier Tank, which is located near the airport. Hoosier Tank is investing $4 million and new equipment and anticipates the hiring of 15 new employees through this investment. Mr. Glavich explained this will be presented to the council this coming Monday, to confirm the resolution. President Troy Warner stated the Council has started the budget process and has had the first couple of meetings. There are still nine budget meetings left to go. He stated, there has also been public input due to “Build the Budget” both online as well as public events and through the 311 system. He explained that residents like the Redevelopment